The Initial Public Offering of DQ Entertainment got a good response from the investors. According to the NSE, the IPO, which closed today, got subscribed around 86 times. DQ Entertainment is one of the leading companies in animation business in India.
The company has entered into capital market entailing the public issue of 16 million shares at the face value of Rs 10 each in its bounty.
DQ opened the subscription of these shares during March 8-10, 2010 with the price band of Rs 75-80 per equity share of Rs 10 each. According to NSE data, the issue received total bids for 1113.5 million shares, over subscribing by around 86 times.
However the group expects to churn out Rs 150 Cr at its higher end on the price band. Further the group has raised Rs 25 Cr via the pre IPO placements to IDFC Investments and a grip on high net worth individuals.
However, DQ plans to use this money in developing IT parks in SEZ in Hyderabad and in financing its investment in co-production and IP content generation. The company would reportedly spend around Rs 51 Cr for developing IT parks and Rs104 Cr in co production and IP content generation.